tomorrow which widely expected to announce the iphone 5. we will have jennifer from san francisco with all the details. that is tonight's "willis report". don't forget to dvr the show if you can't catch us live. have a great night and we'll see you tomorrow lou: good evening everybody, on the 11th anniversary of the september 11 attacks, united states embassy in egypt under siege by radical islamists. those events and prospect of a downgrade of u.s. debt complicating suddenly the president's re-election efforts which only appeared to be brighting. we take all of that up here tonight. congressman randy forbes joins us, member of the armed services committee. former u.s. ambassador to the united nations john bolton. judith miller is among our guest. also ahead the chicago teachers on strike,

demanding an ex-exorbitant raise. just because chicago has lousy schools doesn't mean that teachers should have to suffer along with their students? we take that up in the chalk-talk. angry radical islamists in the streets of cairo, some scaling the walls of the american embassy chanting anti-american slogans and tearing down the u.s. flag and taking it down and replacing with black flag and with symbols that say there is no god but allah and mohammed is their messenger. there were warning shots from embassy marine guards, but no injuries reported. the embassy says the situation is fluid. and they are working with egyptian authorities to restore order. embassy spokesperson that the american staff was evacuated from the embassy before the breach. hours later our consulate in

eastern libya stormed by armed men who set the building ablaze. the building was evacuated before their attack. the men reportedly angered by a film being produced by u.s.-based coptic christian egyptians. that questions the words of mohammed. president obama before those events in egypt and libya, had made a point of saying that the islamic religion is not america's enemy. >> today, the war in iraq is over. in afghanistan we're training afghan security forces and forging a partnership with the afghan people. by the end of 2014, the longest war in history would be over. i always said our fight is with al qaeda and its affiliates, not with islam or any other religion. lou: the u.s. embassy in cairo apologized to anyone in the region offended by that movie and criticized anyone who would hurt the feelings of muslims.

meanwhile the president rejected a request to meet with israel's prime minister at the united nations general assembly later this month. the white house cited scheduling conflicts. the president's schedule to be on the campaign trail when benjamin netanyahu will be in this country. and the so-called convention bounce in the polls for president obama seems to have already dissipated a brand new "abc washington post poll" of likely voters has the president leading governor romney now by one point. yesterday the president was in resurgence and tonight, he is in a statistical tie within the margin of error. the frosty and sometimes outright hostile relationship between president obama and prime minister netanyahu took a turn for the worst today as the president's schedule apparently won't permit him to might with the leader of this nation's main ally in the middle east. fox news chief white house correspondent ed henry has the report.

>> just days after taking jerusalem out of the democratic platform sparked chaos at their convention -- >> in the opinion of, let me do that again. >> the white house is now dealing with the fallout from a report in the israeli press claiming president obama denied a request to meet with prime minister benjamin netanyahu in new york later this month around the opening session of the u.n. general assembly. >> i think president obama knows that prime minister netanyahu will ask him, what are you going to do regarding iran? how long do you want us to wait? maybe he wants to avoid that meeting. i understand he is busy campaigning but those crucial issues are more important. >> white house officials confirmed to fox that the two leaders will not be meeting but insisted the president did not refuse to meet with netanyahu, noting the president is in new york on september 24th. and tuesday september 25th. white hose spokesman said netanyahu does not arrive until later in the week. adding quote they're simply not in the city at the same

time but the president and prime minister are in frequent contact and the prime minister will meet with other senior officials including secretary clinton during his visit. an israeli official told fox, the prime minister made it clear he will travel to washington to make the schedule work and today netanyahu had harsh words for the u.s. over its stance on iran's nuclear program. >> tells israel, wait. there's still time. and i say, wait for what? wait until when? those in the international community who refuse to put red lines before iran don't have a moral right to place a red light before israel. >> the tension comes as the u.s. atomic agency says it has new intelligence suggesting iran has vadness its work on a nuclear bomb. while the president used his convention speech to try to smooth things over --

>> our commitment to israel's security must not waiver and neither must our pursuit of peace. >> he and the prime minister had a series of frosty meetings which republican presidential nominee, a long-time friend netanyahu has tried to capitalize on. >> they're now saying they're not certain what the capital of israel might be. i find that one more example of israel being thrown under the bus by this president. >> white house would not agree with romney's characterization they would not get specific about the red lines the president is demand. >> the president is committed unequivocally is committed to prevent iran from acquiring a nuclear weapon. >> i spoke to a senior official moments ago would not rule out a meeting in washington could be worked out on friday september, 28th. the official also noted it is an election year. it is possible that the president could be in a battleground state that day, a move that might only inflame netanyahu even more. lou?

lou: thank you, ed henry, fox news chief white house correspondent. our next guests opposed sequestration. he did not vote for it. he says our troops should never be used as bargaining chips. now it is on the man who signed the defense budgets cuts into law, to fix the mess that he created. president obama. joining us now is congressman randy forbes. member of armed services committee, house judiciary committee. congressman, good to have you with us. another deadline has been missed. the white house refusing to oblige the letter and spirit of the law that he signed, refusing to give congress any detail on the proposed cuts, some $108 billion, to the defense budget. what should be the reaction of congress? >> well, lou, as you know this president has cut $800 billion out of national defense in the last two years. sequestration would be another half trillion dollars. he supported and wanted sequestration. he has done nothing to stop it or stave it off.

what is even worse his administration has refused to do anything to implement it. we're only four months away from that becoming the law of the land. so congress, in a rare bipartisan situation, all but two members of the house of representatives, and virtually every member of the senate voted to require him to tell us how and tell the american people how he was going to implement these huge draconian defense cuts. he was supposed to have that report in by the 6th of september and as usual he just failed to do it. so we're waiting to see if and when he complies. lou: as you wait, i had asked congressman, what congress should do in response. what should you all do? what can you do, if the president is intractable and refuses to follow the law? >> lou, the house already has taken action. we have passed a budget that would stop sequestration next year. we did it without raising taxes. simply by curtailing some of the increase in spending in other programs. it would stop it for a year.

but the president refuses to do anything and because of that, the senate refuses to do anything. as you know, for congress to act we have to have both the house and senate. we're waiting for the senate to take some kind of action. if they disagree with the house plan, they can plan whatever they want. we can sit down in conference. they have to take some kind of action or these cuts will go into effect on january 2nd. lou: millions more jobs hang in the balance. every one should understand that. let me turn to the white house today. absolutely refusing to accommodate israeli prime minister benjamin netanyahu for a meeting during the week in which the president, i have no idea how much time the prime minister had requested you about ap -- but appears it would be a week when he would have time to meet anyone, especially our principle ally in the middle east. >> as from clips you shown

this administration's foreign policy is collapsing around the world. it is collapsing one of our major allies israel. israel is one of those nations not burning our flag, not burning our embassy. they still stand with us in some things. for this president not to take time to simply meet with the prime minister and reassure them of our support is just inexcusable in my opinion. lou: inexcusable and, going back to the, to the idea of, burning our flag, this is peculiar moment what termed an arab spring to watch those radical islamists, tearing down our flag and in cairo, setting fire to our consulate in benghazi. what is, what would be your response? what do you think should be the response of the united states? >> well, lou, i think the response should have taken place long before now. this president in the policy, foreign policy that he had just hasn't worked and it is

collapsing. i think the first thing i would do is meet with our ally in the middle east, which is israel. i would make sure everybody knows with clarity that the united states stands with israel. we'll support israel. the other thing i would stop supporting some of these countries doing these act, burning our flags, attacking our embassies. and the united states needs to have a clear position that this administration just refused to do that. lou: congressman randy forbes as always, good to have you with us. thank you. >> thank you, lou. lou: second city? day two, act two, second rate. teachers and mayor emanuel, they persist and the losers are obvious. students, taxpayers, and common decency. chicago already a lesson for taxpayers, all over this country. that is tonight's chalk-talk. is president obama so busy he can't meet with our nation's closest ally in the middle east? even as israel threatens to attack iran, and iran threatens to wipe israel off

the face of the earth. ambassador john bolton, pulitzer prize-winning journalist, judith miller journalist, judith miller join uwhen we got married. i had three kids. and she became the full time mother of three. it was soccer, and ballet, and cheerleading, and baseball. those years were crazy. so, as we go into this next phase, you know, a big part of it for us is that there isn't anything on the schedule. has oats that can help lower cholesterol? and it tastes good? sure does!

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moved higher on expectation that is the federal reserve will launch another round of quantitative easing. the dow up 69 points. the s&p up 4 1/2. the nasdaq gaining a half-point. in economic news tonight, the u.s. trade deficit rose slightly to $42 billion in july. our manufacturing deficit hitting a record high of almost $64 billion. and it could worsen for american manufacturing. last friday, we learned the sector shed 15,000 manufacturing jobs in the month of august. major defense contractors today confirm they will send out tens of thousands of employee layoffs and warnings shortly before election day because congress has not addressed so-called sequestration cuts set to take effect early next year. lou:. as tensions between the united states and israel worsen, the united nations atomic energy agency announcing new intelligence suggests that iran has

advanced work on a nuclear pom. i'm joined now by former u.n. ambassador to the united nations, fox news contributor, john bolton, pulitzer prize-winning journalist and fox news contributor, judith miller. let's go first to the issue of what is happening in cairo and benghazi and hopefully it will be contained there but these, this storming of our embassy, the burning of our consulate, this is not the stuff of an arab spring, is it? >> no this is radical islamic wave cresting in the middle east. and i think anybody who remembers the takeover of our embassy in tehran in 1979 has to be chilled at the picture of people standing on top of the walls of our embassy in cairo and reports that fire has damaged or destroyed the consulate in benghazi. we better be prepared for something worse coming in the next several days at a minimum. i think it is time to tell

the government of egypt, their security forces could have prevented this and we expect them to be prepared the next time. lou: do you agree, judy? >> i'm afraid i do agree with john. often times we disagree. lou: the night is young. >> there can be absolutely no dispute that that is an attack on american soil. the egyptians have an obligation to protect the embassy. just as they had an obligation to protect the israeli embassy which they also did not do. this morsi government, in mohammed morsi wants to be considered a serious player, if he wants the united states to reduce egypt's debt by a billion dollars which we promised them we would do, i think we have to be very clear --. lou: which looks like utter -- >> that will not be tolerated. lou: that looks like utter madness right now. >> that is very foolish. remember the muslim brotherhood's official position 9/11 was an effort by the american government to help stimulate the economy back in 2001.

i think mohammed morsi should be called upon to repudiate that position. the coincidence, if that is what it is of coming across our walls on 9/11 is just unbelievable. >> as upsetting is all of this is, more upsetting to many americans the fact that the obama administration, its state department, actually apologized to the very radical islamists who were demonstrating on behalf of the makers of a film questioning mohammed. and setting aside the, our constitutional rights, and, culture and heritage of free speech to say that they had abused our freedom in hurting the feelings of muslims. judy, this strikes some, particularly me, if i may be candid about, as utterly, i'm, it is just disgusting. >> i think an endorsement to

free speech could have been issued and should have been issued on the 10th of september but not as protesters are climbing the walls of the american embassy and moreover, it is unclear what film they were protesting but it seems to be a film that was put out online by curt wilders, who last time i checked is not an american but a dutch citizen and politician. this is just a pretext for staging a noisy, raucous, nasty, dangerous, protest on the day of 9/11. lou: and, with netanyahu asking for a meeting, it admittedly israel is a small nation, 6.5 million people. the president of the united states is in charge of a super power. but, israel is our principle ally there. and the issues are for israel, extent. they are all about whether or not israel survives. >> look, it is a bad day for america and its friends. the essence of free speech the government doesn't deal with substance.

the government has no role in commenting on the substance of speech by americans. that statement by the embassy was appeasement. this is worse than the stockholm syndrome. at least then people are already hostage. this is a prehostage statement. and on israel, for obama not to meet with netanyahu at a time of the iranian nuclear weapons program reaching a climax is just inexplicable. lou: let's take a look at that, at the statement issued by the state department, the embassy, if we could put that up. the embassy of the united states in cairo condemns the continuing efforts by misguided individuals to hurt the religious feelings of muslims as we condemn efforts to oaf fent believers of all religions. goes on to say, the 11th anniversary of the september 11th, 2001, terrorist attacks americans are honoring our patriots and those who serve our nation as the fitting response to

the enemies of democracy. and with that we are, i mean, -- >> the ambassador should fall on her sword over this one. this is embarassment to the united states. it is an embarassment to barack obama, if he doesn't repudiate it soon, it will be something americans consider in november. >> more than that, it lacks a coherent policy towards egypt. what we do with respect to the muslim brotherhood and safeguarding american interests. it is just a disaster on many, many levels. >> leave it at this. there are foreigners on the walls of our embassy in cairo. we need a strong american response or they will be there, again, not just on the walls but over the walls next time. lou: this is, a strange moment in our history. it's a strange event on a day that, in which we commemorate those we lost and those attacks. and this administration has taken a posture that they

have to know first of all is wrong. politically this could, politically this is absolutely damaging to his re-election efforts. >> depends how you feel about israel. and i think this is a real mark of where the president really is. for precisely the reason you say, politically you would say, of course i will see prime minister netanyahu. yet he is rejecting even that. that shows the depth of disdain he holds for that country. lou: very quickly. netanyahu is talking very strongly though. >> he was. lou: talking about red lines. i have to tell you, netanyahu needs to mind his manners in very, very serious -- >> i think that is what the administration was responding to. my understand ehud barak is coming here next week to smooth things over. let's hope he does. this is the wrong message to send to the iranians right now. lou: i believe both of you are exactly right. this administration to reject the request by netanyahu is an insult, a slap in the face. it's, bizarre.

it is incomprehensible for netanyahu to behave as he is doing now. >> if there were --. lou: difficult times. >> if there were nukes building pointing at your backyard you would be worried about red lines too. >> his own government --. lou: let me say this to you. if your existence depends on the good offices of the united states, you would, if and i'm going to leave this, you would be with all due respect, john bolton, you would be i think at least respectful of the nation and the office that, that barack obama holds. thank you, ambassador bolton. and judith miller. up next, oh, the irony. two powerful friends of the president squaring off in chicago, the teaches union and mayor rahm. but what role do the students and taxpayers play in this second act of political theater in the second city? we'll examine that in tonight's chalk-talk. we're coming right back. the capital one cash rewards card

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can you print only stamps? no. first class. priority mail. certified. international. and the mailman picks it up. i don't leave the shop anymore. [ male announcer ] get a 4-week trial plus $100 in extras including postage and a digital scale. go to stamps.com/tv and never go to the post office again. >> i appreciate mr. romney making his comment. the commitment here is to make sure you don't cut education resources. while you have economy make sure you have the resources to doing what you have to do. he had a lot of other types of thing he wants to do like tax cuts for most fortunate. that means there will be tremendous cuts in education. those aren't the right choices. lou: well that is chicago mayor rahm emanuel, saying thanks but no thanks to mitt romney who released a statement siding with the mayor against the striking chicago teachers unions. and as you listen to mayor

emanuel you would think things are just boffo in chicago. that the students are doing great. education is flourishing, public education is a shining jewel of the midwest. no public word by the way from president obama but that really isn't that surprising because the president doesn't want to upset the teachers unions. but someone better upset those unions because tonight we're going to talk turkey, if we may. we need to just recognize that the teachers unions are killing our kids chances of a better life in this country. i will repeat that. teachers unions are responsible for killing our kids chances for a better life. you would be forgiven if you gagged when you hear one of the luminaries of left saying this teachers strike is all about the kids, all about the kids. well here's what the kids are getting right now. more than half of them, more than half, 52% of them, 5%

of chicago's fourth graders are below basic levels of reading. below. and you could understand why teachers would want t have a raise because they're doing at that well with those kids. more than a third, 36%, are below basic. below. 32%. in math. 40% drop out before they graduate. 40% drop out. and just 6, 6 out of every 100 students in chicago obtain 4-year college degrees. 6 out of 100. what are chicago taxpayers paying for? what are they getting out of

those as they describe themselves disrespected teachers? well, here's one thing the teachers are getting that doesn't seem to be getting a lot of focus. 71 cents out of every education dollar going into public education in the state of illinois goes to, teacher retirement costs. teachers are asking, well, for, they have asked for a 35% raise. they're asking for a 26% raise when they already make an average annual salary of $76,000, one of the highest pay levels in the country. the people in chicago don't have much of a voice but let's take a look who is really in control and why. we turn to the money. chicago, chicago gets 39% of its funding, now you were listening to rahm emanuel there. he is in charge of the funding, right?

39% of the money comes from local sources, property taxes, fees paid by chicago residents. 39%. 27% of their budget comes from state taxpayers. 27%, getting perilously close to what the local taxpayers are paying. and, you got to run a budget, right? 17% of their money right now in chicago, that's right, i said 17%, 17% of their money comes from the federal government in chicago. in dollar terms, the federal government has provided chicago schools with more than $4 billion over four years. that's more, are you ready? that's more than 10,000 in that period per student. 10,000. that is why it makes some people furious when they hear that teachers are more

preoccupied with political correctness than the kids they're supposed to be serving. by the way, when you add this up, this leaves another 17%, because they have to balance their budgets in chicago, in case you're wondering about this. 17%, they just go out and borrow this past year. 400, $400 million spent to pay the debt, that they already owe plus, another 400 million dollars in bonds, because they couldn't balance their budget. you see the game being played in chicago, and other school districts all across the country. did you know, for example, when we talk about political correctness, that portland public school teachers are undergoing equity training this week. equity training. so that teachers can do better with math and with, no, not science. so they can better understand their own, quote, white privilege. i'm not making this up, obviously. one teacher reportedly

mentioned a peanut butter sandwich in a lesson last year. the principal, oh, this principal, highly sensitized and enlightened of course took issue with that, saying quote, what about somali or hispanic students who might not eat sandwiches? do you know there are those moments in this country in which suggesting that a hispanic kid, for example, only eats tacos would be considered rather offensive for you folks there in portland, in education and educational administration. to suggest that a somali doesn't eat a sandwich, i mean this is where we're going, folks. we can't get a kid out of school, 40% of them dropping out, nationwide. almost 50% for minorities. in georgia high school students had to fight an out-of-state atheist group to keep their pregame prayers during football season.

and in new york city, a principal here actually banned kindergarten students from singing god bless the usa because he was concerned it might offend nonbelievers. the most offensive thing about public education in this country, right now is what we're permitting to be done to our kids. there seems to be no shame in chicago. let's hope the rest of the country, the rest of the country find a sense of the future that assures this country's destiny. getting a public education. president obama once ran on hope and change but this time he seems to believe that he divides, he will conquer. author of the new book, quote divider in chief" kate obenshain, sits down with us. 56 days until the

election. just yesterday his campaign was in resurgence, his campaign was on a roll. today, no bounce. what's happening? we'll take that up with "the a-team.". in rare moments nick any ma nauge -- nicky minaje singing praises of looking for a better place to put your cash? here's one you may not have thought of -- fidelity. now you don't have to go to a bank to get the things you want from a bank, like no-fee atms, all over the world. free checkwriting and mobile deposits. now depositing a check is as easy as taking a picture. free online bill payments. a highly acclaimed credit card with 2% cash back into your fidelity account. open a fidelity cash management account today and discover another reason serious investors are choosing fidelity.

lou: 56 days to go? the election and my next guest says president obama betrayed his promises of unity and post-partisanship and with divisiveness that proposes to cut even deeper. former gop chair kate obenshain. she is author of a new book, quote divider in chief". the fraud of hope and change.

congratulations on a terrific book. >> thank you very much. lou: the idea of polarization. we've been polarized, alienated before. you suspect we could be perhaps headed deeper into division? >> want to make clear this book is not a condemnation of different ideas and argument and intellecutal exchange. what i'm saying in this book is that this guy was elected president to be the great uniter. he will transcend the nastiness and name-calling and mudslinging. what he has done since the very beginning is the exact opposite. basicallyville nicing almost half of the american population. anybody who disagrees with him, not, over ideas but, but in order to shut them down, if he can convince the people that republicans are anti-middle class, anti-poor people, anti-woman, anti-whatever he shuts them out of the debate and gets to do whatever he wants. lou: he accuses republicans of a war on women that is hard to --

>> bizarre. lou: hard to quantify and to comprehend. today we've got an example where he is being divisive when it comes to israel after spending some considerable time, it seemed trying to embrace jewish voters in this country? >> well, that embrace has been very super official. i think anybody would say over the past 3 1/2 years this president has constantly chastised israel. he has embarrassed netanyahu, the prime minister. he has gone out of his way to be supportive of the palestinians, to be supportive of muslims. i was shocked in 2009 when he spoke and gave that speech in egypt and he said it is one of his fundamental responsibilities as president of the united states to root out any sort of misperceptions of islam, negative stereotypes is what he called it. that is not his fundamental responsibility as president of the united states. lou: and today, the state department, the u.s. embassy in cairo, putting out an apology to the very people who were trying to ransack the u.s. embassy. >> it is unthinkable.

and it does go to this division that he has been engaged in between israel and, muslim extremists, really. there is no other way to look at it f this president were general genuinely concerned about protecting religious feelings, would he have stood up and championed christians persecuted around the world? the women steadily persecuted by sharia law and radical islam or just islam. lou: do you think he might have taken note catholics opposed abortion and have certain sensibilities. >> stunning thing. he completely ignored their religious feelings when he basically said because they have certain religious beliefs and don't want to offer a form of, a form of insurance that mandates what they disagree with, they hate women. he basically goes so far to say they are anti-women. to shut them out of the debate and discourse. thank you for being here. congratulations on the book. it is terrific, kate

obenshain. much luck. >> thank you so much, lou. lou: up next, just yesterday the president seemed to be enjoying a convention bounce. today, the new polls show this president is in a dead-heat with a fellow, well, on his left. so just how close is this race, really? which polls are to be trusted? really. "the a-team", you can trust them. they are next.

lou: we reported to you at the top of the broadcast about the storming of the u.s. diplomatic compound in egypt and libya. now the associated press is reporting that an american staff member has died as a result of injuries in those clashes in the eastern libyan city of benghazi. an unknown number of americans according to associated press have also been injured.

that is according to two libyan security officials. a long-awaited inspector general report on "operation fast and furious" placing the blame on dozens of senior level government officials from the justice department and the bureau of alcohol, tobacco and firearms. fox news obtained exclusive portions of the report on "operation fast and furious" that have not yet been made public. and that report shows many senior government executives knew the united states was trafficking guns to mexico at the orders of atf. inspector general michael horowitz is scheduledded to testify before the house oversight committee on that report next wednesday. >> the city of los angeles considering a plan to allow illegal immigrants to use library cards as official documentation. under that promofl illegal immigrants in los angeles who can not obtain driver's licenses could use their library cards as identification which could then be used to open bank accounts, access city services.

opponents are arguing the library cards might encourage illegal immigration and could be easily exploited by terrorists. san francisco and oakland by the way already adopted similar plans. new haven, connecticut, the first city to award illegal immigrants legal identification cards. up next, leon panetta stern words for the seal team six author who detailed the story of the bin laden raid. is he just as focused on finding those in the white house who have been leaking sensitive information? "the a-team" joins us next. chris hahn, lis wiehl. there you see them. bringing up the rear, james freeman. but he will be leading from the front, i'm sure. [ owner ] i need to expand

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lou: joining me now "the a-team", former prosecutor and fox legal analyst, lis wiehl. fox news political an least, chris hahn. "wall street journal" assistant editorial page editor, james freeman. looks like the president had a bounce and today the bounce bounced. what is going on? >> depends on what poll you look at. i like to trust the gallup daily tracker has him up six points. another poll had him up only two or three points, you like the ones well in the lead and abc news, excuse me if i may. just for a second. i will allow me to utter a few words. you don't trust the "abc news/washington post poll" that show him a point a part. >> i trust all the polls. average them all together.

clear average will have them neck and neck throughout. but only polls that matter are state polls. i have him up five points in ohio. >> dismissing everything? lou: you're happy -- >> even though the "gallup poll" -- >> if you guys want to pretend there is santa claus for couple more months. >> obama administration is suing "gallup poll." did you realize that. >> yes, they are. because they do not --. lou: by the way you made yourself a friendly witness on behalf of gal lup against the obama administration. >> i charge 1500 bucks a an hour. lou: they will need a little support when it comes to not only the court but the court of public opinion. this statement coming from the, u.s. embassy in cairo today, after the, after radical islamists stormed the embassy. quote, this is the end of what was rather protracked statement by the embassy. respect for religious beliefs is a cornerstone of

american democracy. we firmly reject the actions by those who abuse the universal right of free speech to hurt the religious beliefs of others. referring to a movie that, well, actually questioned mohammed. i guess the question is in simple, ordinary plain terms, what the hell is the administration thinking about making a statement like that on behalf of the entire -- >> i have a feeling there will be a better statement coming out of the administration next couple hours. i think that is ridiculous statement. contradicts itself. we believe in free speech. we don't believe in free speech. it is what it is. i reject the statement and i bet -- >> it is what it is? that is your rejection of the statement. >> it is what it shouldn't be. >> that might be a little better. >> bad statement. poorly worded statement. contradictory statement that should be withdrawn. we want to make sure our embassy is protected, if egypt can't protect the embassy we need to get out. >> administration getting a

free pass. it is what it is. >> i don't believe that came from the west wing. i believe that came from the embassy. we'll see what happens next couple hours. >> would be nice if the administration took the opportunity in this country the government doesn't tell people what to say, doesn't tell them what films to produce and content. >> right. >> but i actually think that statement can be salvaged if you took the first sentence and had our department of health and human services issue it, saying we're not going to force religious group to pay for things that violate their conscience. this would be a breath of fresh air, not just in the middle east, right here. lou: i think that is splendid idea. by the way the administration has, as we know, a lot of interesting ideas. but right now there is another problem. that is, moody's the ratings agency, i hold them in no favor, believe me, threatening to downgrade u.s. debt. germany saying that they are very concerned about u.s. debt which is really funny, very alarming. but that is a real problem.

it seems to me, for the president. what do you think? >> it's a problem, it a pot calling kettle brac when you say germany is asking or wanting now. have we been down this rode a year or two ago? >> we were downgraded a year ago. money flocked to the united states. more people are investing in the united states putting money in our bonds. >> downgrading -- >> if we're not a good credit, there is no good credit. >> like a politicians you're drawing the wrong lesson. people out of habit the worlds investors in environment of fear they go to u.s. treasurys. i share your view, lou, you don't want to trust the government anointed ratings agencies. world investors will make the judgment. to the extent moody's helps warn politicians you can't borrow every year. lou: moody's and standard & poor's were lackeys for years and years. now they're semilackeys. they're stating the obvious.

it is preposterous, don't you think. >> totally preposterous. if people start ignoring them in this case they would ignore them all the time i think that would be positive. sort of like a broken clock. this is one washington should take to heart. lou: here is warning. benjamin netanyahu prime minister of israel and asked for a meeting with president obama and is rejected. this is not smart either in terms of governing the nation nor as a man who wants to be reelected to the office he holds. >> he should meet with him, period. i don't know --. lou: what is wrong with you tonight? >> look, only to take the issue off the table. you're right, it was short notice thing. hey i'm coming, stop by the house. >> come on. you can fit someone in for coffee or tea for 15 minutes. lou: you get last word if you want it, james. >> tough when you do so much fund-raising and golfing to say your schedule is too busy. >> don't knock fund-raising an golfing, james.

thank you, folks. up next we're going to the in box. an interesting observation on the chicago's teachers strike. i think you will enjoy joy this a lot. we're coming right back. [ thunder crashes ] [ female announcer ] some people like to pretend a flood could never happen to them. and that their homeowners insurance protects them. [ thunder crashes ] it doesn't. stop pretending. only flood insurance covers floods. ♪ visit floodsmart.gov/pretend to learn your risk. so let's talk about coverage. based on this chart, who would you choose ? wow. you guys take a minute. zon, hands down. i'm going to show you guys another chart. pretty obvious. i don't think color matters. pretty obvious. what'sretty obvious about it ? that verizon has the coverage.

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